High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (May 2020)
22 slides from High Tide's investor presentation, May 25, 2020
Slide 1: Investor Presentation May 2020
INVESTOR PRESENTATION MAY 2020 Over 10 Years in Business Consumer-Oriented Cannabis Enterprise Retail-Focused Growth Initiatives
Slide 2: Disclaimer
DISCLAIMER F O R W A R D - L O O K I N G S TAT E M E N T S This presentation does not constitute an “offering memorandum” capital and operating costs, and all economic analysis derived economic conditions and proposed courses of action, based on by High Tide Inc. (“High Tide” or the “Company”) as su
Slide 3: Company Snapshot
C O M PA N Y S N AP S H O T High Tide is an Alberta-based, vertically-integrated and retail-focused cannabis corporation: Stock Symbols CSE:HITI | OTC:HITIF | FRA:2LY RETAIL SEGMENT: Share Price1 $0.18 • Over 10 years focused on the cannabis consumer 1 Average Daily Volume2 418,190 • 32 Canna Cabana
Slide 4: Established in All Downstream Markets
E S TA B L I S H E D I N A L L D O W N S T R E A M M A R KE T S 1 0 + Y E A R S O F O P E R AT I O N S ; 6 V E R T I C A L LY - I N T E G R AT E D B U S I N E S S E S B R I C K S & M O R TA R ONLINE CANNABIS A C C E S S O R I E S O N LY CBD FOCUSED & ACCESSORIES RETAIL One of Canada’s largest Locati
Slide 5: Vision, Strategy, Goals
VISION To provide the full spectrum of best-in-class products and services for cannabis consumers, while growing organically and through acquisitions, to become the world’s premier retail-focused and vertically-integrated enterprise S T R AT E G Y D I F F E R E N T I AT I O N ACCRETIVE GROWTH CONTIN
Slide 6: Timeline of Milestones
T I M E L I N E O F M I L E S TO N E S 32 Current Locations Growth to 3 Growth to 7 1st Franchised Smoker’s Corner Smoker’s Corner Smoker’s Corner Listed as HITI on Locations Locations Location Founded Dec. 17, 2018 Founded KushBar 2009 2012 2015 2018 Co-founded 2019 2020 Acquired remaining Acquired
Slide 7: Recent Corporate Highlights
RECENT CORPORATE HIGHLIGHTS May 14 & 25, 2020 April 22, 2020 March 31, 2020 High Tide Announces 34th and 35th retail High Tide Reports Strong 4/20 Weekend High Tide Reports 1Q20 Financial Results cannabis stores being Canna Cabana Financial Results featuring a 79% Increase featuring a 173% Increase
Slide 8: Recent Financial Highlights
R E C E N T F I N A N C I A L H I G H L I G HT S ( I N T H O U S A N D S O F C A D ) Summary Fiscal 2018 2Q19 3Q19 4Q19 1Q20 Income Statement (Audited) (Unaudited) (Unaudited) (Audited) (Unaudited) $14,000 Revenue $8,749 $6,596 $8,288 $11,409 $13,659 $12,000 $10,000 Gross Profit 3,110 2,351 3,060 4,
Slide 9: The Rising Tide of Cannabis Retail
T H E RI S I N G T I D E O F C A NN A B I S R E TA I L C A N N A B I S M A R K E T S I Z E Multi-billion market in Canadian cannabis consumption1 $4.1 Billion in 2021 MANUFACTURING & WHOLESALE DISTRIBUTION R E TAI L EXPERIENCED. WELL POSITIONED. EXECUTING ON GROWTH. The biggest opportunity in Canadi
Slide 10: Canna Cabana
RETAIL C A N NA C A BA N A B E C O M I N G C A N A D A ’ S L A R G E S T R E TA I L C A N N A B I S N E T W O R K Canada’s One-Stop Cannabis Shop Current & Projected • 32 locations now open in the provinces of Store Counts Alberta, Ontario & Saskatchewan • Highest average rating by independent As at
Slide 11: KushBar
RETAIL K u s h Ba r S E C O N D R E TA I L C A N N A B I S B U S I N E S S : M O D E R N – O P E N – R E L A X E D First locations opened in Alberta in September & October 2019 Third location opened in May 2020 As at Jan. Current 2020 Stores Open Permits Leases AB 3 3 3 ON 0 0 5 Total 3 3 8 11
Slide 12: Future Concept
RETAIL F U T UR E CO N C E P T EXPECTED TO LAUNCH UPON LEGALIZATION OF CONSUMPTION LOUNGES 12
Slide 13: Grasscity
RETAIL G RA S S CI T Y WORLD’S BEST KNOWN ONLINE HEAD SHOP World’s top accessories Large U.S. Customer Base Forums & Social Media e-retailer • 20-year history as online store • 90% of orders from customers in the • 34 million unique users in • 5.8 million site visits per year United States Grasscity
Slide 14: Grasscity – A Strong Strategic Fit
RETAIL G RA S S CI T Y – A S T R O NG S T R AT E G I C F I T & MAN UFAC TU R I N G DISTRIBUTION R E TA I L • Design & Production • Optimized Logistics; ship from • Established Online • Brand Licensing North America to local • SEO & Social Media customers • Multiple Warehouses Margin expansion throug
Slide 15: RGR Canada
WHOLESALE R G R C AN A D A Distribution network Manufacturing contracts 10 Years >5,000 SKUs extends from our with industry leading Experience in the design Extensive product 27,000 sq. ft. facility in factories in China, the and branding of cannabis catalog with 75% Calgary, AB United States and th
Slide 16: Famous Brandz
WHOLESALE First to secure licenses from movie studios, FA M O U S BR A N D Z musicians and other celebrities for smoking accessories CELEBRITY LICENSES: • Snoop Dogg Pounds • Cheech & Chong’s Up in Smoke • Trailer Park Boys • Kevin Smith • Guns N’ Roses • Hellboy • The Beach Bum • Radio Days • The F
Slide 17: Famous Brandz Products
WHOLESALE FAMOUS BRANDZ FAM@US SNOOP DOGG POUNDS" OUR PRODUCTS
Slide 18: Strategic Partners
S T R AT E G I C PA RT N E R S N O TA B L E I N V E S T O R S : FINANCE: AUDITOR: S E C U R I T Y: T E C H N O L O G Y: R E TA I L LEGAL: BUILD-OUTS: G RO W T H B Y A C Q U I S I T I O N Goal of growing the business by acquisition, domestically as well as in the US and EU, through various channels:
Slide 19: Management Team, Board of Directors, Advisors
BOARD OF MANAGEMENT TEAM DIRECTORS ADVISORS Secretary-Treasurer Raj Grover Raj Grover Founder, President & Executive Chairman Shimmy Posen Chief Executive Officer Partner, Garfinkle Biderman LLP Nader Ben Aissa External Legal Counsel Rahim Kanji, MBA, CPA, CA Strategic Advisors Chief Financial Offic
Slide 20: Shares Outstanding
S H A R E S O U TS TA N D I N G As at April 30, 2020 Share Capitalization Table Common Shares - Issued and Outstanding 234,508,937 Potential Shares from Stock Options1 10,060,000 Potential Shares from Exercise of Warrants2 130,567,881 “HITIF” LISTED ON Potential Shares from Exercise of Broker Warran
Slide 21: Why Invest?
WHY INVEST? COMPELLING INVESTMENT OPPORTUNITY IN A R E TA I L - F O C U S E D C A N N A B I S L E A D E R The perspective of a manufacturer, Existing infrastructure backed by distributor and retailer on the hottest financing for fast deployment across cannabis products and accessories. the country.
Slide 22: Raj Grover, Founder, President, CEO & Chairman
Raj Grover High Tide Inc. Founder, President, 11127 15th St. NE CEO & Chairman Unit #112 raj@hightideinc.com Calgary, AB T3K 2M4 (403) 265-4207 1.888.9.420.420 ir@HighTideInc.com HighTideInc.com 22